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International Trade is quickly becoming one of the hottest industries around the world, but it is not a new industry by any means. Trade across nations and across the globe has been hot since prehistoric man, but it is becoming increasingly lucrative as people begin to understand how beneficial trade can be on an international level.
Introduction to International Trade and Importing and Exporting Goods
Importing and exporting is big business not only in the United States, but all over the world as well. The three primary reasons that make importing and exporting businesses so important in the modern economy boil down to as follows:
- Availability: There are certain things that you simply cannot grow or create in your own home country. For example, you cannot reasonably grow bananas or coffee beans in Alaska, and you cannot make Ball Park hot dogs in France. This is simply the nature of the world. Availability accounts for a very large portion of why international trade, importing and exporting are so important.
- Cachet: Some items naturally pack more of an image if they are imported in rather than grown at home, such as champagne and caviar for example. German beer, Egyptian cotton, French perfume and Scandinavian furniture are all examples of this. When you buy the items from distant places, they simply seem classier and more spectacular than when you buy them locally. This is known as cachet, and plays a vital role in the popularity of international trade, importing and exporting.
- Price: When you buy certain things in other countries, they can be significantly cheaper. Mexican clothing, electronics from Taiwan and toys from Korea are all examples. By manufacturing them or assembling them in another country, domestic companies can save money and those savings can be passed onto the consumer as well.
